Despite Nvidia Corp.’s (NASDAQ: NVDA) latest warnings to investors that the company may not be able to keep up with demand, U.S. stock futures indicated another day of gains for the technology sector.
Markets for stock-index futures may be found here:
- Futures on the S&P 500 index ES00, up 1.13 percent, increased by 0.7% to 4,004
- A gain of 243 points, or 0.7%, brought the Dow Jones Industrial Average futures YM00 to 32,147.
- Futures for the Nasdaq-100 index increased 0.6 percent to 12,013 contracts.
- The Dow industrials DJIA, 1.28 percent, gained 191.66 points, or 0.6 percent, to 32,120.28 on Wednesday. At 3,978.73 points, the S&P 500 index SPX increased 1.3%, while the Composite Index of Nasdaq Stocks gained 1.4%, rising to 11,434.74 points.
Is there a driving force behind the markets today?
The minutes from the most recent Federal Reserve meeting provided more support for Wednesday’s advances, which were expected to be extended. As a result of the meeting minutes, analysts concluded that the Federal Reserve is still willing to reevaluate its aggressive rate-hiking strategy to combat excessive inflation.
There was little new to learn from the Federal Reserve’s latest policy announcements, according to Stephen Innes, managing partner of SPI Asset Management.
According to market pricing, hawkishness remains a risk.” We’ll need a lower level of inflation expectations to halt the rate-setting process if the Fed intends to do so. For example, in 2018, the Fed’s balance sheet was half the size it is now, and companies like Apple were not proposing 10% pay increases,” he wrote clients in a note.
AVGO, 2.26 percent, announced a $61 billion acquisition for cloud startup VMware Inc. VMW, 1.24 percent, that had been rumored for a few days, although speculation had already been circling the market. Shares of Broadcom are down marginally, while those of VMware is up 1%.
Twitter shares rose 5% in premarket trade after Tesla CEO Elon Musk indicated in a regulatory filing he would use stock to fund his $44 billion Twitter transaction rather than a margin loan secured by Tesla shares.
Apple Inc, AAPL, 0.13 percent shares were down 1.4 percent in premarket trading because the company aims to maintain the output of the iPhone flat this year because of industry issues.
Some Apple employees want to organize a union, which may increase hourly compensation to $22 per hour, up 45 percent from 2018, as the company competes in a tight labor market.
After the end of the market on Wednesday, investors were also keeping an eye on a new round of disappointing tech projections. Stock of cloud computing firm Nutanix Inc. NTNX fell 32 percent after the company issued a dismal fourth-quarter forecast.
In premarket trade, Nvidia Corp. NVDA, 0.50 percent shares fell 5% after the chip company announced record profits, but a lower forecast due to China COVID shutdowns and the conflict in Ukraine. After the software business Snowflake Inc. SNOW, -10.07 percent issued a dismal projection and cited cautious customer behavior, its shares plunged 14 percent.
First-quarter GDP revisions and weekly unemployment claims were expected at 8:30 a.m. Eastern Time, and investors were keeping an eye on both. Pending sales for April will be released at 10am Eastern.
What are the prices of other assets?
10 year Treasury yield TMUBMUSD10Y, 2.747 percent climd to 2.766 percent, a 2 basis point increase. There is a direct correlation between bond yields and the price of the treasury.
For July delivery, West Texas Intermediate crude CLN22 rose 0.8 percent to $111.24 a barrel on the New York Mercantile Exchange (CL00, 2.20 percent). To get an ounce of gold priced at $1,840.70, gold futures GC00, -0.02 percent fell by $0.30.
The price of one bitcoin BTCUSD, -3.29% went down 1% to $29,070. The Stoxx Europe 600 SXXP, a measure of European equity markets, rose 0.58 percent, while the FTSE 100 UKX, a measure of London’s stock market, remained unchanged at 0.44 percent.
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